Orsted wants out of $300M forfeiture for scrapped New Jersey offshore wind farms

On Monday, a spokeswoman, Alexandra Altman, said Murphy’s administration “is evaluating Orsted’s recent statements and correspondence, and will take any and all actions necessary to ensure Orsted honors its commitment and responsibility to the state.”

The company agreed to put up a $100 million guarantee that it would have Ocean Wind I built by the end of 2025. It also was obligated to pay an additional $200 million toward the development of the offshore wind industry in New Jersey.

Orsted wrote off $4 billion last week, due largely to costs associated with the cancellation of its two New Jersey projects.

The cancellations added fresh uncertainty to an industry seen by supporters as a way to help end the burning of planet-warming fossil fuels, but derided by opponents as inherently unworkable without massive financial subsidies.

And it is another political headache for Murphy and Democrats shortly before elections for the state Legislature in which opposition to offshore wind has become an important part of Republican campaigns.

New Jersey still has several other offshore wind projects in various stages of development, with four new proposals submitted in August alone. They join the one remaining project of the three originally approved by the state, Atlantic Shores. That is a project by Shell New Energies US and EDF Renewables North America.

Atlantic Shores said last week it remains committed to its project, though it hinted in a statement that it, too, is seeking additional help.